| Because the debt contract lures the shareholder to choose a risk bigger project to invest, that conflicted between the shareholder and creditor. If the project investment has had the high income by using financial leverage, this superior earnings belongs to the shareholder all, but when the project investment defeat, the creditor will undertake its consequence, and that also creates the debt depreciation finally. But this has formed the property substitution effect with the stockholder's rights revaluation. With the debt has the guarantee, the shareholder will use this kind of risk to weaken the power, when especially the borrower will have the guarantee property right, the company will use the risk great property to substitute the risk small property with difficulty. Leech and Scott(1989) stressed that the guarantee is advantageous to solute the question of the creditor's rights value dilution.The dilution of bond value refers to the enterprise market value and in the existing sales income invariable situation, if the borrower has same level or the higher priority debt through the release and the existing creditor's rights, that will cause the existing creditor's rights value to dilute, creditor's wealth shift to the shareholder Black (1976).Because in the debt contract's warrantee permits the lender eliminates it to collateral redeems the power in the borrower violation time, this may reduce the lender to carry out the debt contract cost, also limited the partial creditor's rights value to dilute directly.Obviously, the guarantee can solve the problem that the creditor creditor's rights value dilute. The enterprise already may mortgages with fixed asset, goods in stock and so on, they may also provide the guarantee or the mortgage guarantee by other people. After company's property mortgage or guarantee certain specified amount often chooses by other Affiliated enterprise provides guarantee, the holding shareholder have absolute domination at the shareholder meeting and board of directors,this often choose the latter most to loan the guarantee the form.. A broad sense, related party refers to all listed companies, there is a direct or indirect interest in the collection, which includes not only consolidated statements within the company, the industry chain downstream suppliers and upstream sales providers, creditors, banks, government tax authorities and so covered by them; the narrow sense of related party means within the framework of consolidated statements of companies,holds 20% stake in listed companies to 50% of the shareholders and the company joint venture joint venture. The broad related party is defined in the study too broad and not conducive to in-depth, therefore, this association as defined in the narrow sense, the guarantor related party within the scope. In order to avoid double counting, within the framework of consolidated subsidiaries occurred in the parent company of two subsidiaries, associated with a security included in the loan guarantees are not included in the parent company. Guarantee means the association of listed companies (including subsidiaries within the consolidated statement) to their own personal property, real estate, securities, notes, rights or credit-based company; Related parties to provide debt guarantees (including mortgage, pledge, guarantee), if the debtor after the expiry of debt default, then the repayment of due debts on behalf of corporate behavior. Creditors agreed to guarantee for listed companies'shows that companies with a guaranteed ability to have some security capabilities on behalf of the credibility of the asset,it is an intangible asset similar to goodwill.For listed companies, the credibility of the value of the assets equally, while it will not bring immediate future cash flow, but it has the assets, will enhance the financing capacity; enhance the level of corporate credit. However, this asset has exclusive, because they are secured while not a specific assets and businesses that corresponds to, but the overall credit situation and enterprises linked, that is, companies can provide the total security is limited. Thus related parties, excluding the provision of income security is the business value of the impairment. Associated with the impact of the security of the value of the company is more serious, especially for a subsidiary, guarantee, in the consolidated statements, in fact, the group liabilities, which the company may increase the proportion of liabilities associated intra-group guarantees.A listed company; external debt incurred by the association of listed companies guarantee to play the external inhibition, and through the introduction of the database data verification of the existence of such inhibition.Based on the sample of 1278 listed companies in China stock market from 2005 to2008 this paper examined the association of external provision of security assets ratio and the relationship between corporate debt. Interception occurred at the same time four years associated with the external provision of security guarantees associated with 415 and receive 696 sample firms, using Logistic regression examined the association of external provision of security assets ratio and the debt structure, ownership structure, free cash flow as well as a listed company within a company the relationship between governance structure. We found that listed companies provide external guarantee ratio associated with the company the previous year asset-liability ratio, the short-term bank debt ratio significantly and positively related to asset-liability ratio, the greater the short-term bank debt ratio of listed companies to provide external security associated with the probability of more large; through this study I found that business-to-bank long-term liabilities associated with the listed companies to provide external security negatively related to business-to-higher levels of long-term liabilities of banks, the company external guarantees provided by the association but the smaller the probability. Second, the corporate return on assets and earnings per share higher levels of net cash flow provide external security of the relative probability associated with the smaller, and ultimately the higher the shareholding and the proportion of part-time chairman and general manager.Full-text is divided into five chapters; the main contents are as follows:Chapter 1 Introduction. This chapter describes the contents of five parts.The first account of research background and research significance; 2 is to introduce the associated definition of security and corporate debt; third, the study set out issues and ideas;4 is planning a research framework and the various chapters written arrangements;5 has raised the academic contribution of this point. This chapter is the overall planning of this article.Chapter 2 Review of the Literature.In this chapter an overview of the literature at home and abroad, study abroad, some of a more systematic way to Western security for financing the results of theoretical and empirical studies to sort out, and pointed out that these research results to the research questions in this paper.Chapter 3 listed companies in China associated with the system guarantee the background and status quo analysis. Combination of China's national conditions, from the national point of view of the macro security background, institutional change analysis, and describes the current status of listed companies and the associated security problems.Chapter 4 associated with corporate debt secured on the impact of empirical analysis. According to the security aspects of foreign associated with research results and our traditional corporate governance, the theory guarantees associated with listed companies in China behavior, theoretical analysis of the external liabilities of enterprises listed companies associated with the impact of guarantees, and to corporate debt in accordance with long-term and short-term, right Bank liabilities and non-bank liabilities, empirical tests of different categories of debt associated with the enterprise security relationship.Chapter 5 Findings and limitations.In this paper, summary of research findings and summarized the same time, given China's capital market operation rules in line with policy recommendations and pointed out that lack of research and future directions for further research. The main academic contribution of this article can be summarized as the following points:First, although the domestic scholars associated with guarantees, hollowing out a lot of research and the value of the company, and also obtained a wealth of academic achievements, but in view of the existing database and can not be directly available to the research purposes that we can achieve the detailed data and information, so that Further classification of the related security as a major obstacle to the study. It is for this reason, a listed company is associated with a security detail acts of high cost of data collection, so the relevant details of the very few empirical studies, and relevant empirical research is mainly reflected in case studies, from the phenomenon of the listed company external security describe the hazards and causes of the lack of security associated with detailed data supported a more in-depth empirical research. In this paper, a clear definition of the associated security, and the association is divided into the external security guarantee, acceptance guarantee, mixed guarantees three categories, so that the research process a Second, the research perspective novelty. Benefits transfer behavior of listed companies has been a research hotspot security has always been associated with the transfer of related parties as a means of financing the occupation of a listed company to study, and that is associated with security as the independent variable factors, the impact of study on the value of the company. Although the study has recently secured factors associated with the article is very rich, but I found that in the past associated with the listed companies only guarantee of the vast majority of the enterprise; debt levels to target asset-liability ratio control, but rarely through the thin external liabilities for the listed companies sub-study to the security impact study on the association. Corporate debt capital as corporate governance theory, a key research areas, the lack of its investigation to study the existing imperfect. This study enriches the associated security. |
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